Irwell Mill, Bacup

To ask the Secretary of State for Health what the cost is of the proposed development by the Burnley, Pendle and Rossendale primary care trust on the site of Irwell Mill, Rochdale Road, Bacup; who will be responsible for the demolition and at what cost; and what payments in connection with the purchase of this site will be made to Stylegleam Ltd. [91935]

The Burnley, Pendle and Rossendale primary care trust will be the owners of Irwell Mill in the very near future. The site was purchased at an auction, at an overall purchase price of £36,500. £14,500 was paid to the part owners, who are not Stylegleam Ltd., but may be associated with them. The purchases have been agreed by the district valuer.

Most of the mill will be demolished, with the Burnley borough council acting as the agents. The Regional Development Agency is funding the demolition work as part of its contribution to the regeneration of the town. A grant of £292,880 has been made available for this purpose.

From September 2003, the site will be transferred into a new public/private company. The primary care trust will have to repay any betterment value to the Regional Development Agency. This is likely to be in the region of £60,000. Any payments to the Regional Development Agency will be paid out of enabling monies, which have been made available to the East Lancashire local investment finance trust project. Thus, the cost of the acquisition and demolition to the primary care trust will be nil.

Once the site has been transferred into the public/ private company, the latter will construct a new health centre on the site, estimated at £4.087 million including equipment, to provide health care facilities to national standards.